The price of car insurance fluctuates based on a variety of factors, but one of the main determinants of that price is your age. Since teen and young drivers are just starting to drive, they are typically the most expensive age cohort to insure.
On average, parents can expect to see an increase of $2,168 in their annual insurance bill by adding a 16-year-old driver to their full-coverage auto insurance policy, according to Bankrate. to be clear, that is not the total cost but an additional cost. By comparison, the average annual premium for full coverage for a 40-year-old driver with a clean driving record and good credit is $1,668. Also, if a young driver has a car accident or receives a ticket, insurance prices can increase by 20% to 40%.
Given the astronomical price tag, we’ve compiled a list of stellar-rated carriers who also offer deep discounts for young drivers to help lower your premium. All of our selections include accident forgiveness features and operate in all 50 states plus Washington, DC, except Amica (which does not include coverage in Hawaii).
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Before we dive in, here are a few things to keep in mind.
what you need to know about insuring teen and young drivers
Teen drivers are those in the 16-19 age range, while young adult drivers are 20-25 years old. the most expensive age group to insure is 16-year-olds. (Teenage boys tend to be involved in more serious car accidents than others, and are more expensive to insure.) premiums generally decrease each year a young driver gains experience behind the wheel.
If you’re a parent, once your child turns 18, you’ll need to decide whether to purchase a separate auto insurance policy for your teen or include them in your insurance.
“It’s almost never less expensive to include teens in their own insurance,” said Michael Giusti, an analyst at Insurancequotes.com. “Almost every metric used to rate insurance policies will favor parents (credit, age, driving record), so the base cost of insurance would be established, with the teen as an add-on.”
However, there are niche situations where it would be better for the teen to have their own insurance plan, such as if they have a poor driving record.
“Putting the teen on a separate policy wouldn’t be less expensive, but it would keep that history from driving down the parent’s rate,” Giusti said.
how to save money on car insurance for teens
There are ways to reduce the cost of insurance premium policies. For example, being a safe driver and using more efficient vehicles (such as Honda Civics, Toyota Priuses and Nissan Rogues) tend to lower costs, even for teen drivers, according to Giusti. There are also discounts based on how often you use your car: “Some companies offer discounts to motorists who drive fewer than the average number of miles per year,” says Janet Ruiz, director of strategic communications at the Information Institute. of insurance.
Teenagers may also qualify for “good student” discounts, or discounts based on learning safe driving habits from a defensive driving course or graduated driver’s license programs.
You can also save money if the youngest driver on your policy doesn’t use your car because he’s in college. “If there is a young driver on your policy who is…in college without a car, they may also qualify for a lower rate,” according to Ruiz. Each insurance company offers different discounts based on your coverage option and other factors, so it’s worth checking which ones apply to you before you sign up.
the best car insurance companies for teens and young adults
best car insurance for teen and young drivers, compared
*not an exhaustive list
**a.m. the best financial strength rating scale runs from d (lowest) to a++ (highest).
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